Nonprofits reduce yearly costs by opting out of SUI tax pools

January 27, 2014

Nonprofits reduce yearly costs by opting out of SUI tax pools

The Mesothelioma Applied Research Foundation announced in November a plan for a social media fundraiser that included matching from a long-time donor. Since the fundraiser began, a second donor has agreed to match up to $10,000 as well. That means up to $40,000 in funds could be raised by the end of the year.  

The campaign is another great example of how nonprofits are using the Internet to the solicit fundraising, and embracing techniques such as matching. The Web and social media have allowed nonprofits to get much more creative with fundraising and do so at a cheaper cost. It was recently announced that Facebook will add a donate now button for nonprofit pages, making it even easier to raise cash on the social platform.

Nonprofits must reducing spending while raising funds
In addition to taking advantage of new ways to fundraise, nonprofits should also seek ways to reduce their yearly operational costs. One method is for nonprofits to opt out of costly state unemployment insurance pools. Nonprofits are required to meet an obligation for unemployment payments, but do not have to pay in to state pools. UI costs for employers have climbed in many states since the recession, so now is a great time to look into alternative methods of funding unemployment insurance.

Opting out means they only reimburse states for the actual amount of unemployment benefits paid out to former employees. While this can save nonprofits money in most cases, there are circumstances where it could become more costly. Because of this, it's important to contact a group that specializes in unemployment insurance programs for nonprofits. A consultant can help determine which type of program is best for a nonprofit that has decided to leave a state's UI pool.

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NYCON members who use First Nonprofit’s programs enjoy enduring savings and improved efficiency. Our association knows that success, because from the beginning, we achieved the same great benefits. Great savings, seamless technology, and responsive service. NYCON highly recommends First Nonprofit’s remarkable unemployment solutions.

New York Council of Nonprofits, Albany, NY

We were introduced to First Nonprofit through another housing authority. In our analysis and comparison to what we were paying the State, our first year savings was $5,800 plus. We have been with them since the end of 2008 and I am glad we have been. I consider them an arm of our HR department.

Kankakee County Housing Authority, Kankakee, IL

Because INCS advocates for the operating conditions that allow charter public schools to provide high quality public education, partnering with First Nonprofit was an easy decision. First Nonprofit’s unemployment programs provide our member schools two operating elements crucial to their ability to provide high quality public education: savings and budget certainty. Capable, committed teachers are the key to student success. By participating in the unemployment insurance savings plan, charter public schools gain peace of mind and are able to invest more money in their teachers.

Illinois Network of Charter Schools

Throughout our membership in the Unemployment Savings Program, First Nonprofit understood our demands, community dynamics, and the importance of seamless services; that allowed us to serve our constituents better.

Hugh Parry, Retired President of Prevent Blindness America